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Educators are some of the most important and vital people in the world. They mold the minds of the youth and help shape all of us into becoming smarter humans. But to become teachers, many Americans rack up thousands of dollars in student loan debt—and then go to work earning less than they might have in the private sector.
Teachers have debt relief options, though, thanks to federal government aid, including student loan forgiveness programs. We’ll show you how teacher loan forgiveness works and how you can qualify for it.
Teacher Loan Forgiveness Programs
There are two types of teacher loan forgiveness options: the Teacher Loan Forgiveness Program and Public Service Loan Forgiveness (PSLF).
Teacher Loan Forgiveness
Teacher loan forgiveness is a federal program for educators who work in low-income schools, allowing for forgiveness of up to $17,500 in student loans. You may qualify if you:
- Have been employed full-time as a teacher for at least five consecutive years.
- Work at an elementary or secondary school or agency that serves low-income students.
- Have federal direct student loans or Stafford loans that are not in default.
This program is available only to “highly qualified teachers,” which the U.S. Department of Education defines as someone who has earned at least a bachelor’s degree, received full state certification as a teacher and has not had any certifications or licenses waived.
The full $17,500 forgiveness is reserved for highly qualified math or science teachers at the secondary level or special education teachers. All other teachers who otherwise meet qualification can receive up to $5,000 in loan forgiveness under this program.
Public Service Loan Forgiveness
Public Service Loan Forgiveness (PSLF) is a loan forgiveness program for public service workers, like those in government and nonprofit sectors, as well as teachers.
After you’ve made 120 monthly qualifying student loan payments—which translates to at least 10 years—the government will forgive the remaining balance on your student loans. To qualify, you must:
- Work full-time at a government (federal, state, local, tribal) institution or a nonprofit organization
- Have eligible federal student loans that are in an income-driven repayment (IDR) plan
- Make 120 qualifying payments toward your loans.
Federal direct loans are eligible for PSLF. If you have a Federal Family Education Loan (FFEL) or Perkins loans, you’ll have to convert them into a direct consolidation loan to qualify for PSLF. Your loans must also be enrolled in an eligible repayment plan.
However, if you’ve been making payments using the wrong loan type or repayment plan, all is not lost. The Department of Education announced temporary changes that allow borrowers to count many of these payments. As long as you were working for a PSLF-eligible employer, any payments made during that time can be counted toward the 120 payments necessary to gain forgiveness.
To make sure all your payments are counted, some borrowers may need to submit a PSLF form by Oct. 31, 2022. Borrowers with ineligible loans may also need to consolidate their debt by the same date. You can find full details of the action steps you must take on the Student Federal Aid site.
Can You Receive Both Forgiveness Options?
Yes, you can receive both Teacher Loan Forgiveness and PSLF if you qualify for both.
While you may qualify for both programs, you’ll need to have two separate periods of teaching service. For instance, if you apply for Teacher Loan Forgiveness after five years and that money is forgiven, you can’t claim those same five years in PSLF. To qualify for PSLF, you’ll need to make 120 more qualifying payments after your Teacher Loan Forgiveness.
In general, you may expect to make payments for around 15 years to get both types of forgiveness.
Related:Student Loan Forgiveness Calculator
How to Apply for a Teacher Loan Forgiveness Program
To apply for Teacher Loan Forgiveness, you’ll need to submit the Teacher Loan Forgiveness Application to your loan servicer. Your school or educational agency will need to vouch for your certification. If you have multiple loans with different servicers, you’ll need to complete an application for each one.
Before you apply for PSLF, you can check your eligibility with the PSLF Help Tool and the employment certification process. Both of these serve as guides to make sure you’re on the right track. Rather than assume you’ve made enough payments or work for the right employer, these tools will confirm you’re doing it right.
When you’re ready, you can submit your completed PSLF form to the U.S. Department of Education via mail or fax.
State Teacher Student Loan Forgiveness Programs
If you don’t qualify for federal forgiveness programs or you’re looking for additional help, you may qualify for state help.
Each state has different forgiveness programs and eligibility requirements. The American Federation of Teachers offers a searchable database to find forgiveness options in your state. You can search by subject area, grade level, educational position and more.
It’s important to read through all your different options at the state level. You may qualify for several different forgiveness programs, but you may not be eligible to apply for all of them. Talk to your loan servicer about which options are best for you based on the type of loans you have, how much you owe and where you live.
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Alternatives to the Teacher Student Loan Forgiveness Program
Not everyone is eligible for teacher loan forgiveness. Whether you work at a different type of school or you need a little bit more help, there are other ways you can reduce the burden of student loans.
Income-driven Repayment Plans
IDR plans are available for federal student loan borrowers, and payments are made based on your household income and family size. How much you pay ranges from 10% to 20% of your discretionary income. Your remaining balance after 20 or 25 years of payments—depending on your IDR plan—is forgiven.
If you’re applying for PSLF, you’ll need to get your loans into an IDR plan regardless. If something happens with your PSLF track—like you stop working for a qualifying employer—you may still get loan forgiveness, but it may not happen as quickly as it would with PSLF.
Refinance
While refinancing your student loans won’t get you into a forgiveness track, it could lower your monthly payments or interest rates or allow you to pay off your loan sooner.
Refinancing is when you take out a new loan to replace your old loans and then make one monthly payment toward your new loan. If you have a stellar credit score, you may qualify for the lowest interest rate available by private lenders. But keep in mind that if your interest rate isn’t lower than what you’re currently paying on federal student loans, it might not be worth refinancing your loans if you have to end up paying more in the long run.
Refinancing your loans also means losing the protections and options you’d get with federal loans, since your new debt will be a private student loan. For instance, deferment and forbearance aren’t offered across all private lenders. So if you can’t afford to make payments or need to pause payments without penalty, you may not have the option with some private lenders. Because refinancing comes with these types of risks, only refinance if it makes sense for your financial situation.
